Rivian CEO: EV Tax Credit Repeal 'Not A Political Thing'

Rivian Automotive's CEO, RJ Scaringe, has downplayed concerns about the potential repeal of the $7,500 federal EV tax credit, stating that it's "not a political thing" and that the future of transportation will be electric regardless. In an interview with Automotive News, Scaringe expressed his confidence in Rivian's ability to adapt to any changes in the market, emphasizing the company's focus on creating highly compelling products.



Scaringe believes that any changes to the tax credit would be "equally applied to all," creating a level playing field for all companies in the electric vehicle sector. He also warned that some legacy automakers might invest less in electrification if they prioritize short-term profitability over long-term growth. This could potentially benefit Rivian, as it would face less competition in the EV market.



Rivian has recently closed a loan agreement with the Department of Energy for up to $6.6 billion in financing for its second EV manufacturing plant in Georgia. The new plant will produce the more affordable R2 SUV and R3 crossover, which are expected to usher in the next era of growth for Rivian. Scaringe is confident that the company will be able to adapt to any changes in the market, including the potential repeal of the EV tax credit.



When asked about the Inflation Reduction Act's (IRA) application, Scaringe explained that it works great for leasing, and the $7,500 tax credit does apply. This could create some interesting ways to access more price incentives for customers, potentially leading Rivian to reconsider and introduce leasing options in the future.

In conclusion, Rivian CEO RJ Scaringe has expressed his confidence in the company's ability to adapt to any changes in the market, including the potential repeal of the $7,500 federal EV tax credit. By focusing on creating highly compelling products and investing in technology, Rivian can maintain its competitive position in the EV market, even in the face of changing policies and subsidies.